Stormwater, Parking Fee Hikes; Tax Rates Considered In Alexandria Budget

ALEXANDRIA, VA — Residential parking district fees and residents' contributions to stormwater capacity projects could get more expensive if approved by Alexandria City Council.

City Council's upcoming meeting on April 8 will include proposals for fee increases in addition to a public hearing on the real estate and personal property tax rates. All of the items are associated with the annual budget, which City Council will give final approval to on April 30.

Here's a recap of the key tax and fee decisions coming up.

Tax Rates

As part of the annual budget process, City Council sets real estate and personal property tax rates. City Manager James Parajon's proposed budget would keep the real estate tax rate of $1.135 per $100 of assessed value. Even with a flat tax rate, property owners who saw their assessment values increase should expect a higher tax bill. The city estimates average residential real estate tax bill would increase from $7,931 to $8,285 annually. City Council ruled out a higher rate by setting $1.135 as the advertised real estate tax rate.

Under the budget proposal, the personal property tax on vehicles would remain the same at $5.33 per $100 of assessed value. For vehicles designed for people with disabilities, the rate would remain $3.55 per $100 of assessed value. The proposed personal property tax on business items is $4.75 for tangible personal property and $4.50 for machinery and tools.

Final rates will be adopted with the budget on April 30. The public will be able to provide feedback on tax rates during the April 8 public hearing. Public hearings are required under Virginia law if the proposed tax rate results in a tax bill increase above 1 percent from the previous year.

Stormwater Utility Fee

The stormwater utility fee, which provides dedicated funding for stormwater quality and capacity projects, has been on the rise in Alexandria. This year, the stormwater utility fee is proposed to increase from $324.10 to $340.30 per billing unit. The billing unit is based on a typical single-family home, but fees will be less for condo and townhouse types and more for larger single-family homes. A public hearing on the stormwater utility fee increase will be held on April 22, and final adoption would come with the budget approval on April 30.

When City Council first adopted the stormwater utility fee in 2017, the fee totaled $140 per billing unit. Then, the fee doubled in two phases within a year — $140 to $210 in June 2021 and $210 to $280 in November 2021. Since then, fee increases have continued to be adopted with annual budgets.

To provide context, a larger portion of funds went to stormwater quality initiatives to meet state and federal mandates than stormwater capacity initiatives. But when the city experienced multiple severe flash flooding events tied to insufficient stormwater capacity, a task force was created and recommended fee increases to accelerate stormwater capacity projects and maintenance.

According to a city staff memo, the fee increase alone would generate an additional $1.1 million. Altogether, the fee generates $20.8 million for storm sewer large capacity projects, spot improvement projects, stream and channel maintenance, and storm sewer maintenance projects.

Residential Parking Fees

Residents parking their cars in the city's residential parking permit districts could see costs increase. The city is proposing to increase the fee from $40 to $55 for the first vehicle, $50 to $75 for the second vehicle, and $150 to $250 for the third and any additional vehicles. The fee was last increased in 2018. The city said the proposed fees are still below the estimated $100 to $250 monthly costs to park in garages.

For context, the fee is separate from the vehicle personal property tax and doesn't get charged to all city residents. The residential permit parking program applies to residents who park their cars on the street within parking districts with high parking demand. That includes areas like Old Town and residential areas near Metro stations. Vehicles parked in these districts are subject to two-hour and three-hour time limits, but those with the residential permit are exempt from that time limit. However, the city code rule that vehicles cannot be parked in the same on-street space for 72 continuous hours still applies.

According to city data, 5,000 Alexandria households received permits for one vehicle in 2024, 1,700 households received two permits, and 350 households received three or more permits. If the same number of households receive permits, the city estimated increases would generate an additional $200,000 in revenue annually.

The Alexandria Traffic and Parking Board unanimously recommended the parking fee increases. A public hearing will be held April 22, and final action would come with the final budget on April 30.